Business - Featured - International - Mining - December 16, 2020

UK stops funding new oil, gas, coal projects

THE United Kingdom has recently declared that it will stop supporting and funding any new oil, gas and coal projects in Africa said on the 5th anniversary of the Paris Agreement.

This decision is followed by opposition to the recently announced support of the UK Export Finance’s (UKEF) for Total’s 12.88 mtpa Mozambique Liquid Natural Gas (LNG) export terminal in Cago Delgado.

This undermines Mozambique’s opportunity of becoming a top ten LNG supplier with more than 150 trillion cubic feet of proven natural gas reserves as well as the potential of making it an oasis for gas monetization and meeting our increasing energy demands.

African Energy Chamber Chief Executive Officer NJ Ayuk said while this is a setback, we must continue to be unwavering in our commitment to stand up for Africa’s energy sector, its workers, energy poverty and those free-market values that will make our continent attractive to committed energy investors.

“We in Africa must continue working hard on saving for the future; diversifying our economies through gas monetization; and improving the lives of Mozambicans and Africans

“I will personally return to Mozambique next week and will engage with the country’s leadership and the energy industry. Dropping investments for LNG projects in Mozambique after pressure from uninformed extremist groups in the UK and claiming it’s for climate change is a publicity stunt by the Johnson administration and not factual,” he said.

Zimbabwe among other African countries is working hard towards gas monetisation through the involvement of Australian listed oil and gas exploration company Invictus.

Invictus chose to participate in Zimbabwe because the new government is pro-business, promoting foreign investments and has implemented investor-friendly reforms.

The company recently completed field operations and will begin drilling Zimbabwe’s first oil and gas wells in the Muzarabani prospect in October next year.

The energy industry and more specifically oil and gas companies operating in Africa, need to do a better job when it comes to communicating their efforts to reduce carbon emissions, energy poverty, create opportunities for local businesses, moving people out of poverty and putting countries on a path to a better future to prevent the continued exodus of large funds from the sector and Africa.

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